Trade of the Day: Intercontinental Exchange (ICE) Moves Past the Tipping Point

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Editor’s Note: Due to technical issues, Sam was unable to provide today’s Trade of the Day. James Brumley is filling in for today.

Intercontinental Exchange (ICE) — Intercontinental Exchange operates a network of exchanges and clearing houses for financial and commodity markets in the United States, the United Kingdom, Continental Europe, Israel, Canada, and Singapore. The company manages ICE Futures Europe, ICE Futures U.S., ICE Futures Canada, ICE Endex, NYSE Amex Options, NYSE Arca, and ICE Futures Singapore, as well as over-the-counter markets for physical energy and credit default swaps, and central counterparty clearing houses.

Last year wasn’t a great year for ICE shares, as the company digested its 2013 acquisition of the New York Stock Exchange. With the dust settling, though, and investors realizing the purchase of the NYSE and a handful of other smaller deals are bearing fruit, the stock’s tide has taken a turn for the better.

In fact, the new trend is quite strong on a technical basis.

The current bullishness is founded on support at a long-term support line (dashed) that has been brushed and used as a pushoff point three times since September of last year. Bolstering that bullishness is the fact that the last two reversals at the long-term support level have also materialized at the key 200-day moving average line.

Trade of the Day: Intercontinental Exchange (ICE) Moves Past the Tipping Point

chart key Trade of the Day: Put Cerner in Your Corner (CERN)

Today’s trigger is the fact that ICE finally fought its way back above the 20-day moving average line after dancing with that possibility over the past week. The expectation is, however, that the recent bullish reversal will at least be as strong as the average rally has been since last September. Those were each good for 20 points or more, and the current effort is closer to the beginning of the move than it is to its likely end.

This is a trade that could need a little room at first, but if and when it’s cleared, the 50-day moving average line has acted as support (and resistance) a few times in the past few months. That would make for a meaningful stop level, if the need arises. Before Intercontinental Exchange shares put some distance between themselves and the 50-day moving average line though, use the 20-day moving average line as stop level.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/07/trade-of-the-day-intercontinental-exchange-ice/.

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